Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Sunday, September 9, 2012

SIME DARBY BERHAD, formerly Synergy Drive Bhd, is an investment holding company engaged in the trading and marketing of commodities. The Company operates in six segments: plantations, which is engaged in palm oil refining and fractionation, and oil palm cultivation; property, which is engaged in property development, management and investment, as well as the provision of golf and other recreational services; industrial, which is engaged construction of highways and railways, buildings, international airports and dams, powering marine engines for police launchers and fishing trawlers at sea; motor vehicles, which is engaged in the assembly and distribution of vehicles, provision of after-sale services, and hire purchase and lease financing; energy and utilities, which is engaged in engineering design and fabrication, system integration, power generation, treatment and supply of treated water, and general trading, services and others.

Not interested unless CPO price can stay strong above 3k and back to uptrend or stock price strong stay above Bolinger upper band

Comment

Revenue increased 28.1% and also higher than preceding year corresponding quarter 8.1%, eps increased 25.4% but lower than preceding year corresponding quarter 16.3%, cash generated from operating enough to cover financing expenses but still incresed borrowings and spent 7.1% of Group cash to cover all other expenses, margin decreasing, liquidity ratio indicate financial strength is getting weaker but still good for the Group, slightly better gearing ratio but still indicate the financial leverage strength is weaker than earlier, all accounting of repayment and collection period is good, higher inventory can indicate better demand of Group products, CPO price in downtrend, most segment still growth

First Support Price

9.7

Second Support Price

9.5

Risk Rating

MODERATE

Research House

Alliance Target Price

11.7 (2012-08-30)

AMMB Target Price

12.06 (2012-08-30)

ECM Target Price

9.71 (2012-08-30)

HLG Target Price

10.48 (2012-08-30)

HwangDBS Target Price

10.6 (2012-08-30)

Kenanga Target Price

10.3 (2012-08-30)

Maybank Target Price

11 (2012-08-30)

MIDF Target Price

11.8 (2012-08-30)

OSK Target Price

11.18 (2012-08-30)

RHB Target Price

11.65 (2012-08-30)

TA Target Price

11.62 (2012-08-30)

CIMB Target Price

11 (2012-09-06)

Public Target Price

11.21 (2012-09-06)

Accounting Ratio

Return on Equity

16.72%

Dividend Yield

3.58%

Gross Profit Margin

0.00%

Operating Profit Margin

10.35%

Net Profit Margin

10.19%

Tax Rate

19.23%

Asset Turnover

0.9881

Net Asset Value Per Share

4.33

Net Tangible Asset per share

4.18

Price/Net Tangible Asset Per Share

2.34

Cash Per Share

0.85

Liquidity Current Ratio

1.5518

Liquidity Quick Ratio

0.8581

Liquidity Cash Ratio

0.3116

Gearing Debt to Equity Ratio

0.8183

Gearing Debt to Asset Ratio

0.4418

Working capital per thousand Ringgit sale

19.0%

Days to sell the inventory

99

Days to collect the receivables

65

Days to pay the payables

84

Technical Analysis

SMA 10

9.795 (Same)

SMA 20

9.798 (Downtrend 3 days)

SMA 50

9.855 (Downtrend)

SMA 100

9.78 (Same)

SMA 200

9.511 (Uptrend)

MACD (26d/12d)

-0.013895 ( 0.000712 )

Signal (9)

-0.014406 ( 0.000128 )

MACD Histogram

0.000511 (Bullish trend 1 day)

Bolinger Upper Band

9.869

Bolinger Lower Band

9.727

My notes based on 2012 quarter 4 report (number in '000):-
- Lower pbt from Plantation segment than FY11Q4 largely due to the lower fresh fruit bunches (FFB) production in spite of the higher average crude palm oil(CPO) price realised of RM2,925 per tonne against RM2,906 per tonne in the previous year

- Group FFB production was lower by 3.4% at 9.8 million tonnes (2011: 10.1 million tonnes) as both Malaysia and Indonesia recorded lower production by 1.6% and 6.6% respectively, attributable to the effects of weather and tree stress. Oil extraction rate (OER) was however higher at 21.8% as compared to 21.4% a year ago

- Midstream and downstream results were adversely affected largely due to the loss incurred by an overseas refinery whilst the Malaysian operations was impacted by lower utilisation and tight margins following the latest Indonesia’s export tax structure. It reported a loss of RM62.3 million for the current financial year from the loss of RM74.6 million the previous year which included an impairment of RM114.0 million

- Industrial segment experienced robust demand especially from the mining, logging and construction sectors in Australasia, Malaysia and Singapore except for China/Hong Kong, which was affected by the local government policy of tightening credit to address inflation

- Contribution from Motors division continued to grow due mainly to the strong demand in Malaysia, Singapore and New Zealand despite the weaker sales from China

- Lower pbt from Energy & Utilities mainly due to the run-off costs on the on-going projects in the oil and gas operations which was partially offset by higher profits from the Utilities operations in China. The Port operations have recorded higher cargo handling throughput at Weifang Port following the completion of the 3 x 10,000 tonnes berth in December 2011

- The results from Healthcare was about the same as last year’s level as the impact from higher inpatient and outpatient volume was moderated by the slower nursing education sector and the start-up expenses for the new Ara Damansara hospital

- Other businesses achieved a turnaround by registering a profit of RM68.8 million as compared against last year’s loss of RM42.0 million. This was a result of the higher contribution from Tesco and the insurance brokerage business including a profit of RM29.7 million from the disposal of an investment as against the impairment of an available for sale investment of RM54.3 million in the previous year